Paraguay's President Santiago Peña announced that the United States has requested an increase in beef exports from Paraguay to help combat high meat prices within the U.S. This request comes as the U.S. beef herd has shrunk to historic lows, creating a demand for additional lean beef supplies. The U.S. previously announced a temporary tariff-free quota for 300,000 metric tons of lean beef trimmings between September and November, primarily targeting countries without existing quotas, including Paraguay and Brazil. This measure aims to supplement the U.S. domestic supply, particularly for ground beef production, which utilizes lean beef trimmings.
Paraguayan exporters estimate they could supply an additional 5,000 to 10,000 metric tons under this new quota, potentially boosting their 2026 U.S. exports to between 65,000 and 70,000 metric tons, up from an initial projection of 60,000 metric tons. For context, from January to July, Paraguayan beef shipments to the U.S. reached approximately 30,000 metric tons, a 46% increase compared to the same period last year. Most of this was frozen lean beef used for ground beef. However, Paraguay faces significant competition from Brazil, which is expected to capture the majority of the 300,000-ton extraordinary quota due to its larger export scale, logistical capabilities, and established presence in the U.S. market.
The U.S. market has become a crucial destination for Paraguayan beef, especially for lean trimmings, which are mixed with fattier domestic beef for ground products. The opportunity presented by the U.S. quota is seen as beneficial for Paraguay's entire beef value chain, from producers to frigoríficos (slaughterhouses). Industry representatives note that while the U.S. is not a market for premium cuts, it provides an important outlet for specific beef components, enabling better utilization of the whole animal. The current situation also highlights the importance of having multiple markets, particularly as Paraguay's second-largest market, Israel, recently experienced a temporary halt in shipments due to the withdrawal of rabbinical inspectors.
